Advanced Search
MyIDEAS: Login to save this article or follow this journal

The Impact of State Disclosure Requirements on Municipal Yields


Author Info

  • Fairchild, Lisa M.
  • Koch, Timothy W.
Registered author(s):


    Municipal bonds are not subject to federal registration requirements imposed upon corporate securities issuers. Instead, each state determines whether municipal issuers must disclose any information and, if disclosure is required, what type of information must be provided. This research examines whether the net interest cost on competitively sold municipals differs across issues in states subject to full disclosure versus states that do not require disclosure. Results indicate that there is no evidence that disclosure requirements screen out risky issues and that net interest cost for nonrated bonds is, on average, approximately 14 basis points less in states with disclosure requirements than in states with no mandatory disclosure. Disclosure is found to have the most significant effect on nonrated bonds.

    Download Info

    If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
    File URL:
    Download Restriction: no

    File URL:
    Download Restriction: no

    Bibliographic Info

    Article provided by National Tax Association in its journal National Tax Journal.

    Volume (Year): 51 (1998)
    Issue (Month): n. 4 (December)
    Pages: 733-53

    as in new window
    Handle: RePEc:ntj:journl:v:51:y:1998:i:n._4:p:733-53

    Contact details of provider:
    Postal: 725 15th St. NW #600. Washington, D.C. 20005-2109
    Phone: (202)737-3325
    Fax: (202) 737-7308
    Web page:
    More information through EDIRC

    Related research



    References listed on IDEAS
    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
    as in new window
    1. L Paul Hsueh & P. R. Chandy, 1989. "An Examination Of The Yield Spread Between Insured And Uninsured Debt," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, Southern Finance Association;Southwestern Finance Association, vol. 12(3), pages 235-244, 09.
    2. Thompson, G Rodney & Vaz, Peter, 1990. "Dual Bond Ratings: A Test of the Certification Function of Rating Agencies," The Financial Review, Eastern Finance Association, Eastern Finance Association, vol. 25(3), pages 457-71, August.
    3. Simon, Carol J, 1989. "The Effect of the 1933 Securities Act on Investor Information and the Performance of New Issues," American Economic Review, American Economic Association, American Economic Association, vol. 79(3), pages 295-318, June.
    4. Hsueh, L Paul & Chandy, P R, 1989. "An Examination of the Yield Spread between Insured and Uninsured Debt," Journal of Financial Research, Southern Finance Association;Southwestern Finance Association, Southern Finance Association;Southwestern Finance Association, vol. 12(3), pages 235-44, Fall.
    5. Jarrell, Gregg A, 1981. "The Economic Effects of Federal Regulation of the Market for New Security Issues," Journal of Law and Economics, University of Chicago Press, University of Chicago Press, vol. 24(3), pages 613-75, December.
    Full references (including those not matched with items on IDEAS)


    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as in new window

    Cited by:
    1. Jayaraman Vijayakumar & Kenneth Daniels, 2006. "The Role and Impact of Financial Advisors in the Market for Municipal Bonds," Journal of Financial Services Research, Springer, Springer, vol. 30(1), pages 43-68, August.


    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.


    Access and download statistics


    When requesting a correction, please mention this item's handle: RePEc:ntj:journl:v:51:y:1998:i:n._4:p:733-53. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Charmaine Wright).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.